Redstar Gold operator starts Carlin trend drilling

2008-08-20 08:32 ET - News Release

Mr. Scott Weekes reports

GOLD FIELDS BEGINS DRILLING ON REDSTAR GOLD'S CARLIN TREND PROJECTS IN NEVADA

Gold Fields Netherlands Services BV, a subsidiary of Gold Fields Ltd., has begun first-phase exploration drilling at Redstar Gold Corp.'s 100-per-cent-owned Richmond Summit and Dry Gulch projects within the Carlin trend in Nevada, United States. Under terms announced previously in Stockwatch, Gold Fields can earn a 60-per-cent interest in the two projects and plans to spend approximately $1.4-million during the first year of the agreement.

Scott Weekes, president of Redstar, stated: "Redstar is very pleased with the aggressive approach taken by Gold Fields on our Carlin trend projects. The groundwork completed by Gold Fields, including mapping, geophysics and trenching, has helped define drill targets on the Richmond Summit and Dry Gulch properties. These two projects are located in close proximity to very large gold deposits within one of the most productive gold trends in the world, and they share similar geological characteristics to the mines in the area. In the short time since we optioned these projects to Gold Fields, they have quickly moved them to the drill stage."

The drilling program at Richmond Summit includes seven drill holes totalling 2,800 metres and will consist of a combination of reverse circulation and core drilling. The two-square-mile Richmond Summit property is four miles northwest of Newmont Mining Corp.'s Mike deposit (8.5 million ounces gold) in the Gold Quarry district (approximately 29 million ounces of production plus reserves as of 1999) and six miles south of the Carlin-West Leeville gold mines (greater than 10 million ounces gold production plus reserves). Widely spaced drilling at Richmond Summit is targeting major faults and favourable lower-plate carbonate rocks in areas of altered and mineralized dikes and mineralized upper-plate rocks (surface gold values to 7.75 grams per tonne). The project lies at the edge of exposed lower-plate carbonate rocks, which are the dominant host to gold mineralization along the Carlin trend, and along a north-trending corridor of dikes which marks the southern extension of the Post fault zone. Along the Post fault in the northern Carlin trend, similar dikes occur within the gold deposits and are believed to be temporally and genetically linked to gold mineralization.

The drilling program at Dry Gulch includes two deep holes totalling 1,000 metres and will consist of a combination of reverse circulation and core drilling. The Dry Gulch property is six miles northeast of the Gold Quarry gold mine and seven miles southeast of the Carlin-West Leeville gold mines. Geological and geophysical analysis indicate that structures controlling these gold deposits can be traced into the project area, and there is evidence that favourable lower-plate host rocks may underlie the exposed upper-plate rocks at shallow depths. The drill holes are targeting major structural elements and geophysical features.

Dr. Jacob Margolis, a qualified person as defined by National Instrument 43-101, has reviewed this news release and acted for Redstar in the design and implementation of the work programs at Richmond Summit and Dry Gulch. Dr. Margolis is the U.S. exploration manager for Redstar Gold. Rock samples collected by on-site personnel are shipped to ALS Chemex for assay. ALS Chemex's quality control system complies with the requirements for the International Standards ISO 9001:2000 and ISO 17025:1999. Analytical accuracy and precision are monitored by the analysis of reagent blanks, reference material and replicate samples.